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- The cost of heat pumps, solar panels, and solar batteries will increase by 5% on 1st April 2027
- The Chancellor John Healey didn’t extend the 0% VAT for them at the Budget
- Solar and electrification are the best ways to get your bills down long term
If you’re looking to futureproof your energy bills (and who isn’t?) then now is the time to act because the best tools available, solar panels and heat pumps, will become 5% more expensive on 1st April 2027.
Solar panels, batteries, and heat pumps costs will increase because they will all be subject to 5% after Chancellor John Healey didn’t extend the 0% rate beyond the current deadline of the 31st March.
How much will heat pumps cost expensive after 1st April 2027 at 5% VAT?
| Property size | Two-bedroom house | Three-bedroom house | Four-bedroom house | Five-bedroom house |
|---|---|---|---|---|
| Air source heat pump size | 5kW | 7kW | 11kW | 14kW |
| Air source heat pump cost after 1st April 2027 with 5% VAT | £8,400 | £12,600 | £14,700 | £17,850 |
| Ground source heat pump size | 4kW | 8kW | 11kW | 13kW |
| Ground source heat pump cost after 1st April 2027 with 5% VAT | £12,075 | £15,750 | £19,425 | £22,050 |
How much will solar panels cost after 1st April 2027 at 5% VAT?
| Property size | 1-2 bedrooms | 3 bedrooms | 4 bedrooms |
|---|---|---|---|
| Annual electricity usage | 1,800 kWh | 2,700 kWh | 4,100 kWh |
| Number of panels | 6 | 10 | 14 |
| Cost of installation after 1st April 2027 with 5% VAT | £3,675 | £6,132 | £8,578 |
How much will storage batteries cost after 1st April at 5% VAT?
| Battery capacity | Average battery price after 1st April 2027 at 5% VAT |
|---|---|
| 4kWh | £3,150 – £4,200 |
| 5kWh | £4,200 – £5,250 |
| 10kWh | £8,925 – £10,500 |
| 12kWh | £11,340 – £12,600 |
| 16kWh | £12,600 – £16,800 |